-The above data suggest that:
A) consumption varies inversely with after-tax income.
B) consumption varies directly with after-tax income.
C) consumption and after-tax income are unrelated.
D) a tax increase will increase consumption.

Question

-The above data suggest that:
A) consumption varies inversely with after-tax income. 
B) consumption varies directly with after-tax income. 
C) consumption and after-tax income are unrelated. 
D) a tax increase will increase consumption.

Quizplus · Accepted Answer

Consumption typically varies directly with after-tax income, meaning as after-tax income increases, consumption also tends to increase.

-The Above Data Suggest That